North Dakota is suing to sell coal to Minnesota, but utilities don't want it

North Dakota is suing to force the state of Minnesota to drop restrictions on coal-generated electricity, but big utility companies here have already conformed to the rules and say they're not interested.

North Dakota is suing to force the state of Minnesota to drop restrictions on coal-generated electricity, but big utility companies here have already conformed to the rules and say they're not interested.

Gov. Dalrymple says if Minnesota energy regulators require utilities to pay more to burn coal it will hamper North Dakota's growing lignite industry, which already provides a large share of Minnesota's electric power. Regulators here imposed higher costs on coal-burners as part of a plan to require utilities to generate a quarter of their energy from renewable sources by 2024.

A consortium of six North Dakota utilities and coal mining companies is chipping in $500,000 to fight Minnesota's ban on energy generated by burning coal. The state's Industrial Commission filed the original lawsuit. The North Dakota legislature is also committing funds for the legal challenge.

Therefore, North Dakota officials feel the state should be exempt from a Minnesota law that requires utilities to pay more to burn coal, even those from out-of-state. It's part of Minnesota's Next Generation Energy Act of 2007 that requires new coal power emissions to be offset.

The state of North Dakota and its coal power industry want to overturn a Minnesota law that limits imports of electricity generated by coal. Critics claim the law is unconstitutional and unfairly limits business between the states.

Xcel Energy will soon need to purchase new pollution control equipment if the company wants to keep burning coal at its largest Minnesota power plant in Becker. Environmental groups want the state to order the utility to study alternatives to coal, especially solar and wind power.

Minnesota Power says it wants to further study the environmental benefits and economic impacts. The Department of Commerce recommends closing at least three of utility's coal-burning plants by 2016. Each unit is more than 50 years old. Environmental groups have also urged closing the coal power plants, while industrial users want state regulators to disregard the advice.